Stocks quoted in this article:
An earlier Market Observation
discussed the recent weakness displayed by McDonald's (MCD – 26-11/16), which has lost over 40 percent since November. This decline has further accelerated today, as the shares have given up over six percent to record a new 32-month low at 26-3/8.
Last night, the company announced that its earnings per share for 2000 could be negatively affected by as much as seven cents per share due to currency fluctuations abroad.
In response, Bear Stearns reduced its year 2000 earnings expectation for the company by three cents per share to $1.48. Additionally, the equity was downgraded at J.P. Morgan and Bank of America.
On the options front, today's most-active MCD options are the October 30 call and the October 25 put. Just over 1,500 contracts have traded on the call option, while about 1,200 contracts have changed hands on the back-month put. Open interest at these strikes heading into today stood at 2,843 and 212 contracts, respectively.